Should I invest in my car wash business in 2023?

It may seem counterintuitive to invest in a water-focused business in 2023. Water is both expensive and precious. Inflation is rising and sustainability concerns are not going anywhere, Water-saving measures are a hot topic. Does it make sense to invest in your car wash business? You may be surprised by the answer… (hint - it’s a yes!).

1. Car wash businesses can be very profitable in Australia

Between 2010-15, the Australian car wash make grew by a sizeable 2.5%. The industry is forecast to be worth around $600 million. These figures are according to research by IBISWorld.

Likewise, according to GoodSight.com.au, the average annual car wash revenue for a single in-bay automatic is $139,000. That is just the expected revenue for a single bay. If you have more than one, your potential is limitless.

While it is true that car wash businesses require an initial upfront investment, they do not take long to return those funds in profit.

Of course, the success and profitability of car wash businesses will depend on various factors such as the location, the type of services offered, pricing, competition, and customer demand.

It always makes sense to locate your car wash in a high-traffic area or popular tourist destination. You will want a steady stream of customers. Additionally, offering specialized services such as detailing or eco-friendly cleaning options can attract a niche market and potentially increase profitability.

2. Car wash businesses are increasingly popular

On average, the typical Australian washes their car close to 12 times a year, according to Sydney car care company Schmicko.

That is equivalent to once every month.

As more people live in inner-city locations or apartments where car washing at home isn’t practical or possible, professional car washing services are becoming the preferred option for people of all ages. Time-poor young people living in high-density cities are one niche to target. Young customers want convenient and eco-friendly services across the board. A well-managed car wash business can easily be included in this very lucrative category.

If you are charging a very modest $20 for a standard automatic wash service, and your customer is returning monthly, that is $240 a year. The maths is promising if you multiply that figure by your potential customer base!

3. Professional car washing is good for the environment

In general, professional car washes are better for the environment than washing your car at home. There are several reasons for this:

Water Conservation: Professional car washes are designed to use less water than washing a car at home. Many car washes use high-pressure nozzles and recycling systems to minimize water usage, while at home, people often use much more water than they need to.

Proper Wastewater Disposal: Professional car washes are required by law to properly dispose of their wastewater, ensuring that it does not pollute local waterways or contaminate groundwater. In contrast, when people wash their cars at home, the wastewater often runs off into storm drains, which can carry pollutants directly into local waterways.

Use of Eco-Friendly Products: Many professional car washes use eco-friendly cleaning products that are less harmful to the environment than traditional soap and detergents used at home. These products are designed to be biodegradable, meaning they break down more easily in the environment and do not contain harmful chemicals that can harm aquatic life.

Overall, while washing your car at home may seem like a more environmentally friendly option, in reality, professional car washes are often a better choice for those who are concerned about minimizing their impact on the environment.

4. Car wash technology is more innovative than ever

The technology available to car wash business owners is very exciting in 2023. It is now possible to install car washes almost anywhere, even without the need for in-ground work. This is great for new business owners who may not wish to commit to a particular site long-term.

Introducing the new CleanaWater Modular Wash Bay

The CleanaWater Modular Wash Bay is an innovation in car wash technology. Our bays can be transported to your site as a plug-and-play system that’s ready to go or they can be custom-built to fit your site.
Providing an environmentally-friendly solution, our portable wash bays capture wastewater and treat it through an oil-water separator before being sent to the sewer.

The mobility of the system makes them the best option for sites where ground disturbance is not possible or where there is a possibility of future relocation.

Interested in finding out more about our new Portable Wash Bay? Give CleanaWater a call today on 1800 353 788. We can help you determine what wash bay system would work best for your needs.